Cases Considered: Hall v. Tieken Estate, 2008 ABQB 646
PDF Version: The Fraud Exception to Indefeasibility of Title: Applying Section 203 of the Land Titles Act
The land registration system used in Alberta is established by the Land Titles Act, R.S.A. 2000, c. L-4 and based on the Torrens system. Under this system, the provincial government has custody of all titles, plans and other documents related to interests in land and responsibility for the accuracy of all land titles information registered or filed with it. In a jurisdiction with a Torrens system, the government guarantees that a person named as the owner in the register established and maintained by the government has a title that is subject only to encumbrances and exceptions registered against that title and to enumerated statutory exceptions. Basically, a person’s title is free of adverse claims unless those claims are mentioned on their title. Their title is “indefeasible.” There are, of course, exceptions to indefeasible title in a Torrens system. Fraud is one of those exceptions, and it was the exception in issue in this case. In general, if you participate or collude in fraud, you do not have an indefeasible title.